FOST Obligations and Payments

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The micro purchase thresholds for payments without an agreement or purchase order are set at $3,500 for goods and services, $2,500 for services covered under the Service Contract Act, $2,000 for construction, and $350 for telecommunications repair service (no telecommunications recurring services). All payments over the micro purchase threshold must be accompanied by a valid agreement or purchase order.

BSE - Bovine Spongiform Encephalopathy (BSE) payments are for the disposal of carcasses of animals which were destroyed in order to conduct testing for BSE.

Employee Reimbursements - Employee reimbursement payments are payments made to employees to reimburse them for authorized costs associated with official business. For frequently asked questions, visit the FAQ section.

Fee Basis - Fee Basis payments are payments made to veterinarians for gathering samples of animals in order to conduct testing for animal diseases.

Grants - Grant payments are payments to non-federal entities in support of projects in which the agency has no substantial involvement. In general, grant payments are intended for future, often indirect gain to project, organization, or society.

Honorariums - Honorarium payments are payments made to an individual or organization for their services which fees are not legally or traditionally required. For the USDA, most honorarium payments are for guest speakers.

Indemnities - Indemnity payments are payments made to compensate for the loss or destruction of certain animals and crops.

SPS - Secured Payment System (SPS) payments are payments made through Treasury by a secondary financial system called SPS. The payments made by FOST in SPS are either Same-Day Pays or ACH wire transfers. These payments are generally urgent in nature, paid to a foreign vendor, and/or high dollar amounts.

Tort Claims- Tort claim payments are payments made to compensate for breaches of civil duty. Tort claims may comprise of varied topics including auto accidents, defamation, product liability, copyright infringement, and environmental pollution, among many others.

Transportation - Transportation payments are made to shipping companies for transportation of authorized USDA official or employee belongings.

UPS - UPS payments are payments made to UPS for any official shipping expenses incurred via UPS.